Networked R

1
Networked RD in the field of new mobile service
development
Johanna Still Marko T. Heikkinen Department of
Marketing University of Oulu johanna.still_at_oulu.fi
, marko.t.heikkinen_at_oulu.fi Wireless Cities
2006 Oulu, Finland
2
Outline of the presentation

• Why networking in mobile service RD
• Case 1 Sports service
• Case 2 Fair service
• Case comparison
• Conclusions

3
Why networking in RD

• Changes in the competitive environment
• The amount of resources and knowledge needed in
  the development of new offerings has become
  overwhelming for a single organization
• The source of innovation changed
• This is also the case in organizations developing
  new mobile services
• Acting in nets entails both beneficial and
  challenging aspects, which must be taken into
  consideration

4
Purpose of the presentation

• Introduce a network view to new mobile service
  development
• Aim to indicate the benefits and challenges
  related to networking in new mobile service
  development
• Evidence from two real-life cases
• New mobile service for the spectators of a sports
  team
• New mobile service for the guests of a fair

5
Case 1 Sports service 1/2

• The mobile service offering
• Directed to the spectators of the sports teams
  matches
• Static (e.g. player cards, interviews) and
  dynamic (e.g. news, video clips) multimedia
  content to mobile phones
• Static content downloaded from WPAN (Wireless
  Personal Area Network) service points
• Dynamic content over commercial mobile phone
  network (GPRS)
• Organizations that took part to the process were
  e.g. sports team, content providers, device
  manufacturer, operator, university

6
Case 1 Sports service 2/2

• Challenges in new mobile service development
• The needs of the end-users (spectators)
• Novelty of the service concept
• The technology used in mobile service offering
• Possibilities and limitations of certain mobile
  technologies
• IPR issues
• Highly formal contracts in relation to content
  and its distribution
• ? It is extremely difficult for a single
  organization to cope with all these challenges

7
Case 1 Sports service development net
Operator Service channel, marketing
materials Existing knowledge on mobile services
National league Rights to the sport-related conten
t
Device Manufacturer Contacts in
the network Existing knowledge on mobile phones
University User and service studies Mobile
service content creation
Sports team Rights to the content (e.g. logos,
player information and interviews) Contacts in
the network
Content provider Mobile service
content creation Contacts in the network
Research organization Venue for idea
presentation Financial support
Subsidiary Alfa Content creation
Subsidiary Beta Content creation
Subsidiary Gamma Content creation
Existing cooperation
Case-specific contacts
8
Case 1 Findings

• In my opinion this is a good example of local
  cooperation and abilities to network in its
  finest.
• Service offering was created on existing
  technologies and service ideas
• The service was a novel combination of these
  technologies and service ideas
• Modularity influenced the effectiveness of mobile
  service development
• Each actor had its own expertise and resources
  that can be utilized in mobile service
  development
• Each actor concentrated on its own tasks
• Required shared, clear goals
• The network evolved continuously
• Motives, goals and roles of actors evolved during
  the development process

9
Case 2 Fair service 1/2

• The mobile service offering
• Combines mobile phone and PC desktop for
  colleting, categorizing, storing and sharing
  multimedia observations
• Mobile device used for collecting observations
  with context aware information (text, dictations,
  images, contextual information i.e. visual codes)
• Observations uploaded into a website
• Desktop used for browsing, categorizing and
  sharing observations gathered with the mobile
  device

10
Case 2 Fair service 2/2

• Challenges in new mobile service development
• IPR issues
• Novelty of the service concept hindered the
  acceptance with fair organization
• Highly formal contracts in relation to content
  and its distribution
• Fair organization acted as a gatekeeper
• The technology used in mobile service offering
• The duality of the service offering increased the
  complexity of the service
• Possibilities and limitations of certain mobile
  technologies
• ?It is extremely difficult for a single
  organization to cope with all these challenges

11
Case 2 Fair service development net
Media House Rights to the content, Content
creation, Content integration
Subsidiary Content creation, rights to the
content
Municipality Facility provider Contacts in the
network
Fair Organization Rights to the
content Relationships with exhibitor
Exhibitors Content provider
Merchant forum Contacts in the network
Operator Existing knowledge on mobile services
University Mobile service development Mobile
service marketing Mobile service content
integration
Research Forum A Existing knowledge on mobile
services
Device Manufacturer Existing knowledge on
mobile devices
Research Forum B Existing knowledge on mobile
services
Existing cooperation
Case-specific contacts
12
Case 2 Findings

• The key elements of the service offering had to
  be created from scratch
• Content, service concept, service system
• The low level of technological awareness of some
  key actors hindered the development process
• The use of key resources restricted
• The development process led by one actor
• Clear goals, roles and motives of actors

13
Case comparison

• Case 1 Collaboration net
• Dynamic evolving network structure
• Central actor changed during the phases of
  service development
• A number of actors performed strategic activities
  during the development
• Highly efficient development process
• Managerial challenges related to higher dynamics
• Clear objectives and roles of actors required
• Case 2 Supporting net
• More traditional single actor driven development
  process
• University as a webber and hub actor
• Single actor performed most of the strategic
  activities of the development process
• Visible boundaries and objectives of the net
• Lost effectiveness in resource utilization and
  innovativeness between organizations

14
Case 2 Findings

• Network provides a wider resource base than
  individual actors
• Networks as a way to overcome the challenges of
  new mobile service development
• A way to diminish the obstacles created by
  complexity of industry
• Enables resource and knowledge combination
  between organizations
• Notably network may also hinder the development
  activities
• Networking requires more than just finding the
  best actors and technologies
• Possession of resources required for development
  not sufficient
• The key issue is how to combine resources
  innovatively
• Challenge for management to motivate individual
  organizations to pursue shared goal

15
Conclusions 1/2

• Network provides a wider resource base than
  individual actors
• Networks as a way to overcome the challenges of
  new mobile service development
• A way to diminish the obstacles created by
  complexity of industry
• Enables resource and knowledge combination
  between organizations
• Notably network may also hinder the development
  activities
• Networking requires more than just finding the
  best actors and technologies
• Possession of resources required for development
  not sufficient
• The key issue is how to combine resources
  innovatively
• Challenge for management to motivate individual
  organizations to pursue shared goal

16
Conclusions 2/2

• Conflicting interests during the development
  process should be taken into consideration
• Understanding others in network for preventing
  misunderstandings and opportunism
• The networks that develop mobile services are not
  necessarily the networks that commercialize them
• The amount of organizations involved in the
  development process may influence the
  commercialization process

17
Thank you for your attention
Please do not hesitate to comment or ask questions